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For its part, Netflix thinks 2012 could be a banner year for its operation. It's planning to expand to Ireland and the U.K. sometime this year, and according to COO Ted Sarandos, customers will be able to watch "complete seasons of great TV series from all the major networks and most branded cable channels" this year.

It's the international expansion that Netflix is most convinced will turn things around. Even today, the company said that its viewing milestone was reached thanks in no small part to "global expansion."

But not everyone is so quick to agree that international expansion is the medicine Netflix needs. Wedbush analyst Michael Pachter says Netflix is following a strategy of "growth at all costs" without considering the impact its global expansion could have on profitability.

"At a minimum, we expect Netflix to lose $100 million internationally next year, and we think that the figure could rise to as much as $250 [million] to $300 million, based upon its Q4 guidance," Pachter said in a research note late last year.

About the author

Don Reisinger is a technology columnist who has covered everything from HDTVs to computers to Flowbee Haircut Systems. Besides his work with CNET, Don's work has been featured in a variety of other publications including PC World and a host of Ziff-Davis publications.
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